Obama to propose big write-off in upcoming speech

The new write-off will allow companies to recoup the purchase price of such investments, giving them more cash to expand their businesses.

The business community has supported similar initiatives in the past. But with weak economic demand, it remains to be seen how many businesses will take advantage of the tax break by investing in new equipment while customer demand struggles to recover.

Obama on Wednesday is also expected to propose a permanent research and development tax credit, which is expected to cost about $100 billion during the next ten years.